A construction project is carried out by a general contractor with the following descriptions: Project Duration: 3
Question:
A construction project is carried out by a general contractor with the following descriptions: Project Duration: 3 months (Start: May 1st; End: July 31st) Contract Amount: 29,000+36,000+56,000+46,000+61,000+75,000+39,000+105,000+151,000
Budget Amount: 108,000+200,000+304,000 Contract Terms and Conditions Materials: The construction company pays material suppliers in full when it receives payment from the owner.
On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. Labor: The construction company pays for labor on the 25th of each month. Subcontractor:
The construction company pays subcontractors when it receives payment from the owner but withholds 5% from the subcontractor’s payment. Final payment will include payment of the retention. Between the contractor and the owner: On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received.
-Labor: The construction company pays for labor on the 25th of each month.
-Subcontractor: The construction company pays subcontractors when it receives payment from the owner but withholds 5% from the subcontractor’s payment. Final payment will include payment of the retention.
-Between the contractor and the owner: On the last day of each month the construction company may bill the owner for the work completed during the month. The owner pays the monthly bills one month after they are received. The owner withholds 5% from the construction company's payment. Final payment will include payment of the retention.
Cost-loaded schedule and billing schedule to the owner
Month | May | June | July | |
Cost-Loaded Schedule | Materials | 20,596 | 30,837 | 50,619 |
Labor | 40,829 | 60,962 | 70,027 | |
Subcontractor | 30,469 | 100,819 | 154,727 | |
Bill to Owner | 100,026 | 200,678 | 300,929 |
What is the amount of cash to maintain a positive cash flow in this project?
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase